A volatile macroeconomic landscape has brought a new gold rush to institutional investors and central banks, with gold bullion whipping highs of this year’s record highs-a trend that has also expanded into Tether’s digital backed digital token.
By the end of the second quarter, Tether gold (Xau) – a tokenized commodity that offers a direct exposure to physical bullion – is that – that -7.66 ton of fine troy ounces of gold, according to the company’s latest testimony ReportBDO Italia has proven.
This reserve supports more than 259,000 Xauut tokens in circulation, providing an asset of a total market capitalization of over $ 800 million.
The price of Tether Gold closely monitors the value of the physical gold market, which trades just below $ 3,400 per Troy ounce. Xauut effectively carries gold to the blockchain, combining the uncertainty of yellow metal with the ability to use, difference and redemption of features commonly associated with bitcoin (Btc).
Over the past 12 months, Xauut’s price has risen 40%, reflecting the Gold Gold performance, according to Bloomberg Data.
Tether gold, that’s Launched in January 2020Available for trading in many major crypto exchanges, including Bybit, Bitfinex, Bingx and Kucoin. The token recently Expanded its existence in Thailand By the exchange of maxbit cryptocurrency.
Number Cointelegraph reported.
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Gold Demand gets momentum amid macroeconomic and geopolitical excitement
While Crypto investors have long been Touted bitcoin as “digital gold,” Offering similar features in bullion with extra portability and digital-native features, physical gold remains ultimately safe property during uncertainty.
According to World Gold Council (WGC)The global central banks accumulated more than 1,000 metric tons of Bullion in 2024, marked a third consecutive year over that milestone. The Council also noted that most central banks hope that bullion reserves continue to rise over the next 12 months.
“It’s not normal,” write Christopher Gannatti, Global Head of Research in Wisdomtree, commented on the rapid speed of gold accumulation of financial authorities. “For decades, the middle banks have been the nets of gold. Now they have to go back.”
“In a world of increasing the risk of geopolitical and money weapons, gold is one of the few possession that travels well to the borders and regimes,” Gannatti added.
Institution investors followed the suit, pouring billions of gold-based funds (ETF) in the second half of 2024.
This momentum brought in 2025, with the first half of the year witnessed the largest gold ETF Inflows in five years, according to WGC Data. The Golden ETFs recorded $ 38 billion in the first six months, increasing collective handling by 397.1 metric tons of physical bullion.
Advancement to demand is driven by increasing geopolitical and economic concerns, including The trade war of President Donald Trumpwhich strengthened the fear of economic instability and a potential backwards.
Economist Peter Schiff also highlights ongoing inflation risks as a major gold appeal driver. Inflationary pressures have resurrected in the United States, with the Federal Reserve that expects the price increase to accelerate in the second half of the year as tariffs are pushing for higher costs for producers and consumers.
This perspective motivates a careful stance on the financial policy. Morningstar’s Senior US Economist, Preston Caldwell, mentioned That he “delayed the expectations of rate cuts” in the light of these inflationary trends.
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